Mortgage bankers and brokers must get a license to operate in Wisconsin. The regulating agency is the Department of Financial Institutions Division of Banking.
A mortgage banker license is issued to those who originate residential mortgage loans, sell them in whole or sell interests in such loans, or service these loans. Those who provide escrow services must also have a mortgage banker license. However, the VA and banks, real estate brokers, and people extending credit for timeshares typically don’t have to get this Wisconsin banker license. These same exemptions apply to the broker license.
Mortgage brokers are those who seek compensation in connection with arranging a residential mortgage loan for an applicant or investor. Both finding and negotiating loans are covered under this rule. And table funding also requires a broker license.
Bankers have a rather large surety bond requirement of $300,000. And the minimum net worth is a large $250,000. A CPA must prepare a financial statement to attest to this requirement. For brokers, the bond requirement is 120K, and the net worth is 100K. In all cases, the surety bond must be issued by a company that is authorized to do business in this state.
Applicants for these licenses must present a document showing authority to do business in the state that has been issued in the 60 days before the application. And business organization formation documents must also be submitted.
Wisconsin mortgage banker license application fees are $1100. Broker fees are a little cheaper, at $850.
Although not mentioned in the NMLS checklists that are posted below, bankers and brokers would generally have to hire a mortgage loan originator to engage in certain activities. MLOs must be licensed to take, offer, or negotiate a residential mortgage loan application.
Mortgage banker and broker branch licenses are also required. This applies for any office if the customers are residents of Wisconsin even if the office is located out of state. Banker and broker branch license application fees are $370 in this state. There must be a branch manager that is an MLO for brokers and bankers and an extra 10K in surety for any branch offices more than 5. No extra surety is required over and above the standard 120K or 300K as long as there are 5 or less branch offices.
http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Banker-New-Application-Checklist.pdf (main banker license)
http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Broker-New-Application-Checklist.pdf (main broker license)
http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Banker-Branch-New-Application-Checklist.pdf (banker branch license)
http://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/WI-Mortgage-Broker-Branch-New-Application-Checklist.pdf (broker branch license)